Total Quality Management

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Total QualityManagement
TQM

• AKA
• Business Process Reengineering
• Six Sigma
• And much, much more

Article Link The Fit Between Reengineering
Quality Management (.pdf)
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Related Terminology

• Balanced Scorecard
• Baldrige National Quality Award
• Benchmarking
• Business Process Reengineering (BPR)
• Deming
• Document Control
• DMADV / New Product Service Introduction
• DMAIC / Existing Product or Service
• Financial Analysis / Cost of Quality
• ISO 9000
• Lean Manufacturing
• Management
• Metrics
• Plan, Do, Check, Act - PDCA
• Process Management
• Project Selection
• Simulation
• Six Sigma
• Taguchi Methods

Click here for more on all of these terms ?
3.4 defects per million opportunities
6? atMSSU
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ASQ link
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Link ?
This Stuff Works!
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What is Quality?
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Quality Definitions

• Quality Of Design (External Quality)
• The feature or grade variations of a product
• The result of design--purposely incorporated into
  the product product innovation
• Features that meet customer needs
• Fitness for use
• Higher quality enables companies to
• Increase customer satisfaction Make products
  salable
• Meet competition Increase market share
• Provide sales income Secure premium prices
• Major effect is on sales
• Usually, higher quality of design costs more
• Examples
• Car options (e.g. DVD player, "sport" package)
• Temperature choices on washing machines
• 2 yellow pine vs. 3 yellow pine
• Basic oil change vs. "full service" oil change

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Quality Definitions (continued)

• Quality Of Conformance (Internal Quality)
• The degree to which the product conforms to or
  meets specifications
• The result of production variation process
  innovation
• Minimal variation around an ideal value
• Freedom from deficiencies
• Higher quality enables companies to
• Reduce error rates Reduce rework and waste
• Reduce inspection, tests, field failures,
  warranty charges
• Increase yields, capacity Reduce customer
  dissatisfaction
• Major effect is on costs
• Usually, higher quality of conformance costs less
• Examples
• Air conditioning temperature consistency
• Thickness uniformity of steel plates
• Number of defective parts
• Virtually any process measure

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Quality Improvement

• Enhancing the features or grades of a product
• Bringing a chaotic process into statistical
  control
• Moving a process central tendency closer to its
  ideal value
• The reduction of variation around an ideal value
  numerical representation of the customers true
  quality characteristic

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Quality ofConformance
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Principles of TQM(An Abbreviated List)

• Continuous Improvement
• Customer Focus
• Focus on Systems/Processes
• Teams Empowerment
• Leadership Patience
• Prevention

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Cost of Correcting a Copier Malfunction

• After shipped 590,000 (external failure)
• Before shipped 17,000
• Before production 368
• Before procuring parts 177
• Before making parts list 35 (during design)
• Cost increasedOver 16,000X? PREVENTION!

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How TQM Works(A Vast Simplification)

1. Top Management Commitment Knowledge
2. Formation of Steering Team
   (AKA Quality Council)
3. Identification of Major Opportunities
   for Improvement
4. Commissioning of Project Teams
5. Provision of Resources/Monitoring
6. Incremental Improvement thru Natural
   Work/Management Teams

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Pareto Analysis

• Identifies the vital few
• Problems
• Symptoms
• Causes
• Orders phenomena being studied
• Displays cumulative contributions
• Keeps project focused
• Based on 80-20 Principle

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Pareto Chart
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The Pareto Principle

• Most arguments center around the issue of who is
  right.
• A more appropriate and important first question
  is What is worth working on?
• The Pareto Principle is always valuable.

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Process

• A systematic series of steps
• You participate in many both individually and as
  a part of organizations.

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Flowcharts (AKA flow diagrams)

• Graphic representation of steps in a process
• Provides a common under-standing of the process
• Must represent process as it actually is
• Identifies opportunities for improvement
• Guides diagnostic journey

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Flowcharts
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Cause Effect Diagram

• AKA Ishikawa, fishbone diagram
• Shows theories of causes
• Objective Find the Root Cause (almost always
  requires collection of data)

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Cause Effect Diagram Late Medications
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TQM Tool Summary(each is a link to more
information)

• Traditional Quality Tools
• Cause and Effect Diagram
• Check Sheet
• Common Control Chart Cookbook
• Histogram
• Pareto Diagrams
• Scatter Diagrams
• Management and Planning Quality Tools
• Affinity Diagrams
• Flow Chart
• Force Field Analysis
• Matrix Diagrams
• Nominal Group Technique
• Relations Diagram (Interrelations Digraph)
• Systematic Diagrams

TQM Dictionary
Source
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The Five Ms
The 85-15 Rule At least 85 of problems are in
the system less than 15 are under workers
control
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A Culture of Blame?

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Culture of Blame?
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Whos Really to Blame?

• Machines
• Methods
• Materials
• Measurements
• Man

UNLESS YOURETHE MANAGER!
97-3Rule
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A TQM Manager!
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Everything Varies
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Statistical Process Control Summary

• Two classes of causes of variation common and
  special
• Common cause ? Random variation
• ? A collection of cause
  factors
• ? Management's responsibility to
  study change the process
• Special cause ? Nonrandom, identifiable
  variation
• ? Local workforce's responsibility to
  take immediate action to identify and
  correct the special cause
• Two types of errors in taking action
• ? Taking action when not needed (tampering)
• ? Not taking action when needed
• Management consists of making each type of error
  every once in a while.
• SPC minimizes the loss from both types of action
  errors by detecting special causes of variation.
• SPC involves the use of control charts to monitor
  a process. These charts provide for
  interpretation prediction of the process.
• The prime use of SPC is to bring a process into
  statistical control and maintain it in
  statistical control.
• Statistical control a process with no
  indication of a special cause of variation--a
  random process--subject only to natural variation

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An SPC Control Chart Example
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Capability AnalysisSpecification Limits within
Control Limits
-USL -LSL
Incapable Process Must inspect 100
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Capability AnalysisSpecification Limits outside
Control Limits
-USL -LSL
Capable Process Inspection unnecessary
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Advantages of Statistical Control

• 1. Performance is predictable
• 2. Costs and quality are predictable
• 3. Productivity is at a maximum
• 4. Costs are at a minimum
• 5. Effects of changes can be measured
• 6. Provides a sound argument for change

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Consider Yourselves Warned

• "Students are not warned in classes nor in books
  that for analytical purposes (such as to improve
  a process), distributions and calculations of
  mean, mode, standard deviation, chi-square,
  t-test, etc. serve no useful purpose for
  improvement of a process unless the data were
  produced in a state of statistical control."
• W. Edwards Deming

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Understanding Variation and Statistical Thinking

• Beware of changes
• Beware of rankings
• Always ask yourself Is there a
  statistically significant difference?

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Measurements from one period to the next
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Flat-out lies in the media
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Causation

1. Cause precedes effect (temporal sequentiality)
2. Cause and effect vary together (associative
   variation)
3. No alternative explanation (nonspurious
   association)
4. Theoretical support

Symptoms vs. the Root Cause
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Dilbert on Causation
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State of Self-Control

1. Worker knows what s/he is supposed to do.
2. Worker knows how s/he is doing.
3. Worker has the means to change her/his
   performance.

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Hes got the knack!
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Demings 14 Points

1. Create constancy of purpose toward improvement
   of product and service, with the aim to become
   competitive and to stay in business, and to
   provide jobs.
2. Adopt the new philosophy. We are in a new
   economic age. Western management must awaken
   to the challenge, must learn their
   responsibilities, and take on leadership for
   change.
3. Cease dependence on inspection to achieve
   quality. Eliminate the need for inspection on a
   mass basis by building quality into the product
   in the first place.
4. End the practice of awarding business on the
   basis of price tag. Instead, minimize total cost.
   Move toward a single supplier for any one item,
   on a long-term relationship of loyalty and trust.
5. Improve constantly and forever the system of
   production and service, to improve quality and
   productivity, and thus constantly decrease costs.
6. Institute training on the job.
7. Institute leadership (see Point 12). The aim of
   supervision should be to help people and machines
   and gadgets to do a better job. Supervision of
   management is in need of overhaul as well as
   supervision of production workers.

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Demings 14 Points (continued)

1. Drive out fear, so that everyone may work
   effectively for the company.
2. Break down barriers between departments. People
   in research, design, sales, and production must
   work as a team, to foresee problems of production
   and in use that may be encountered with the
   product or service.
3. Eliminate slogans, exhortations, and targets for
   the work force asking for zero defects and new
   levels of productivity. Such exhortations only
   create adversarial relationships, as the bulk of
   the causes of low quality and low productivity
   belong to the system and thus lie beyond the
   power of the work force.
4. Eliminate work standards (quotas) on the factory
   floor. Substitute leadership.Eliminate
   management by objective. Eliminate management by
   numbers, numerical goals. Substitute leadership.
5. Remove barriers that rob the hourly worker of his
   right to pride of workmanship. The
   responsibility of supervisors must be changed
   from sheer numbers to quality Remove barriers
   that rob people in management and in engineering
   of their right to pride of workmanship. This
   means abolishment of the annual merit rating and
   of management by objective.
6. Institute a vigorous program of education and
   self-improvement.
7. Put everybody in the company to work to
   accomplish the transformation. The
   transformation is everybody's job.